Tag Archives: loan

Need an Auto Loan? Get a Cosigner

Car keys being loanedIf you need to buy a car, but bad credit is standing in your way, you know it’s almost impossible to get a new or used car loan. Even if you land a good auto loan company willing to fund you, chances are that you will pay exorbitant rates.

If you think these things are true, then you are fortunately mistaken. Wasatch Peaks Credit Union says that even individuals with bad credit can get auto loans in Ogden  without having to pay astronomical rates. So,  how is that possible? You only need a  cosigner to get that car loan.

No Credit? Get a Cosigner

If you are buying a car for the first time or are a student who has never applied for a loan, it means you have no credit experience. Most likely you will be unsuccessful when you apply for a loan. Having a cosigner by your side will help you overcome this barrier and see you buy your first car.

A cosigner may be a close friend, family member, or spouse who will guarantee your loan should you default your loan payment. If you get a cosigner on your loan, the lenders get the additional assurance that the loan will be repaid and will finance you.

Cosigner Requirements

Lenders require a cosigner to meet some requirements, and credit worthiness is one of them. In such a case the cosigner is responsible for missed and defaulted loan payments, making cosigning a risky business. Also, issues with loan repayments affect the cosigner’s and borrower’s credit scores.

It is important to note that a cosigner has no right to the vehicle ownership; theirs is to ensure that you get auto financing and repay the loan in time.

If you get yourself in a financial fix and you need to get that new or used car loan in Ogden, find  a willing cosigner and get approved for a loan. You can now buy the car of your choice but within your loan terms. With an agreeable cosigner, you can enjoy the freedom that comes with owning a vehicle.

Why You Should Get Pre-Approved for a Loan First Before You Hunt for a House

House Hunting  For years, you’ve been saving money for your dream house. Now that you have enough for the downpayment, you’re ready to purchase it. Unfortunately, you learn that you are not qualified to buy your dream house. Isn’t it disappointing?

If you want to prevent the above scenario, you have to do more than filling up your savings account. For one, you have to get pre-approved first before searching for your dream home. Below are a few reasons why loan pre-approval is crucial in a house hunt.

Pre-Approval Can Streamline Your House Search

You might search online for neighborhoods and houses you plan to purchase. However, if you don’t know exactly what you can afford, you may find yourself wasting time by looking in listings that are out of your price range. While you’re on the Internet, consider getting a pre-approval from Mortgage Ogden and other loan providers that offer pre-approval assistance online. Once you’re pre-approved, you can search better and faster as you already know the price of the house perfect for you.

Sellers Prefer Offers from Buyers with a Pre-Approval

House sellers are generally less willing to accept offers from a buyer without a loan pre-approval. Somehow, getting pre-approved can make you look more trustworthy to deal with. In addition, pre-approval will allow you to have more room to haggle. Some sellers lower their price, include a few appliances, or cover some closing costs to finalize a deal with a pre-approved buyer.

Pre-Approval Can Make Your Search Less Stressful

Above all, getting a loan pre-approval helps make your home purchase smoother. With this document, you no longer have to spend more weeks looking for homes and you’ll prevent getting turned down once you make an offer.

Before you search for your dream house, make sure you get a loan pre-approval first. Not only will it help you hasten your house hunt, but it will also set you apart from other house hunters eyeing the same dream house you want.

What’s the Most Sensible Mortgage Option for Me?

Mortgage in UtahThere are literally hundreds of mortgage products you can choose from so it can be somewhat daunting to find one that best suits your requirements. So before you even approach potential lenders you have to figure out what you can afford and what you really need.

According to AmericanLoans.com, to start, answer the following…

  • Where do you picture yourself in the next five to 10 years?
  • How long are you planning on living in your home?
  • Do you need to have money on hand for future investments?
  • Do you want or need to make improvements on your home?
  • Do you want to remain debt-free?
  • Can you really afford financial risks?

Once you’ve answered these questions, consider the following when evaluating your mortgage options:

A Longer Term for Your Loan

This means a term of 30 years and above. Put simply, the longer term equals lower monthly payments, but higher interest.

An ARM or Adjustable Rate Mortgage

This is ideal if you need to have some on hand cash or want a lower interest rate. For the first several years, your rate will be fixed and then start to float. Know however that your payments will increase or decrease according to market conditions, once floating starts. This option is sensible for those who relocate every few years since if rates increase, they can sell and if rates drop, they can refinance, adds a mortgage officer in Utah.

Consider an 80-20 Home Loan

The average loan finances the initial 80% and a second mortgage with increased interest funds a 20% down payment. You also do away with PMI or private mortgage insurance, which is a standard requirement for properties purchased without the 20% down payment.

Consider Skipping Principal Payments

You can reduce your payments each month by as much as 20% to 25% in the initial years — usually five to 10 years — and likewise qualify for a larger loan. However, know that you get a huge jump in monthly payments when this period of interest-only payments concludes because you then start repaying the principal payments you skipped for the first several years of your loan term.

Keep in mind that taking out a mortgage is a big financial decision. So give yourself sufficient time to compare your options, mull over the pros and cons of each, do the math, shop around, and formulate a plan before you apply for a mortgage.